Generali posts record 2025 profit, unveils 500-million-euro share buyback

Generali posts record 2025 profit, unveils 500-million-euro share buyback

Generali’s 2025 Financial Performance and Strategic Initiatives

Record Profit Driven by All Business Segments

MILAN, March 12 (Reuters) - Italy's top insurer Generali on Thursday posted a record profit for 2025, driven by all business segments, and said it was preparing a new 500-million-euro ($577.1 million) share buyback, highlighting CEO Philippe Donnet's focus on shareholder returns.

In its first full-year results since Donnet's critics gained influence, Generali posted record operating profit of 8 billion euros, up 9.7%, while adjusted net profit rose 14.5% to an all-time high of 4.3 billion euros.

Both figures were broadly in line with a company-provided analyst consensus.

Key Drivers of Earnings Growth

Lower natural catastrophe claims helped lift non-life earnings, while life business held up on broad-based growth and fewer surrenders, Generali said in a statement.

Shareholder Dynamics and Board Decisions

Changes in Generali’s Shareholder Structure

State-backed Banca Monte dei Paschi di Siena, with the backing of Italian tycoon Francesco Gaetano Caltagirone and Delfin, the holding company of late billionaire Leonardo Del Vecchio, gained control of Mediobanca, Generali's largest investor, last year.

Caltagirone and Delfin, two major Generali investors, tried unsuccessfully to oust Donnet, who was backed by the former Mediobanca CEO Alberto Nagel, in 2022, blaming him for failing to grow the insurer fast enough and have since criticized several of his decisions.

MPS have not yet outlined its plans for Generali or the future of Donnet.

Dividend and Share Buyback Announcements

Generali's board approved a dividend of 1.64 euros per share, above the highest analyst estimate in the company's consensus, for a total payout of up to 2.5 billion euros.

Under its strategy 2025-2027, Generali pledged at least 500 million euros a year in share buybacks and more than 7 billion euros in cumulative dividends.

Commitment to Future Growth Amid Global Uncertainty

Despite warning that recent U.S. and Israeli strikes on Iran would weigh on the global economy, Generali said it remained committed to the targets of its 2025-2027 plan, including 8%-10% annual growth in earnings per share.

Additional Information

($1 = 0.8664 euros)

(Reporting by Gianluca Semeraro, editing by Alvise Armellini and Stephen Coates)